Dr. Kieran McQuinn:

My understanding is they would not have to do so just because the state itself defaults unless they have funding from the state and consequently have to default themselves.

I am not aware of any rule that just because the financial institution is domiciled originally in a state that itself has defaulted, the financial institution is obliged to do so. It would just be a case of whether it had funding tied in with the state and consequently could not redeem it.